PRESS RELEASE
SPX Announces Completion of Sealed Power Division Sale to Dana
10 February 1997
SPX Completes Sale Of Sealed Power Division To Dana
MUSKEGON, Mich., Feb. 10 -- SPX Corporation
announced today it has completed the previously announced sale of its piston
ring and cylinder liner business to Dana Corporation for
$223 million and Dana's assumption of certain liabilities. The operations
sold include the Sealed Power Division, Sealed Power Europe, and ownership in
various joint ventures in Mexico and the United States.
John B. Blystone, Chairman, President and Chief Executive Officer of SPX
Corporation said, "The sale of Sealed Power focuses the company's resources on
providing value added solutions (services, tools and equipment) to the motor
vehicle service industry. That focus is consistent with the company's new
strategy, which we call 'Keeping Vehicles On The Road.' After the sale of
Sealed Power, only 20% of our sales will be generated from components sold
directly to OEM's. 80% of our business will come from higher margin vehicle
service solutions and niche businesses."
Mr. Blystone said, "Now that this phase of the company's transformation is
nearly complete we are directing our attention to profitable growth. The sale
of Sealed Power to Dana has given us financial flexibility to pursue various
alternatives to create shareholder wealth.
We are excited about the opportunities that this financial flexibility and
our new strategy will bring. We are also delighted that Dana plans to elevate
engine products to core business status as that will bring opportunities to
the people at Sealed Power."
SPX Corporation is a leading supplier of specialty service tools and
equipment, services for franchised dealers, and original equipment components
to the global motor vehicle industry.
SOURCE SPX Corporation
CONTACT: John Tyson of SPX Corporation, 616-724-5406 /SPX press releases available
through Company News On-Call by fax, 800-758-5804, extension 101179, or http://www.prnewswire.com